Fitch Downgrades Reckson OP

The issuer default rating and senior unsecured notes ratings of Reckson Operating Partnership LP have been downgraded from BBB-minus to BB-plus by Fitch Ratings in view of the pending merger of SL Green Realty Corp. with Reckson Associates Realty Corp.The ratings remain on Rating Watch Negative. Fitch attributed the actions to several factors. "After the merger, giving effect to the sale of Reckson Associates Realty Corp.'s Long Island and New Jersey office properties to an investor group that includes Reckson senior management, Reckson OP's pro forma EBITDA [earnings before interest, taxes, depreciation, and amortization] coverages decline significantly," the rating agency said. "The assets acquired by the investor group are almost entirely unencumbered, reducing the remaining unencumbered asset support of unsecured debt at Reckson OP." In addition, the company's liquidity and financial flexibility will weaken due to the retirement of its unsecured revolving credit facility, Fitch said. The rating agency can be found online at http://www.fitchratings.com.